Photo: Flickr / Ryan LÂµdwig
Mortgage applications surged last week as homeowners refinance to lower interest rates, new data out of the Mortgage Bankers Association shows.The MBA index measuring both refinancing and new home purchases registered a 9.2 per cent increase, above last week’s reading of a 1.7 per cent gain.
That jump was driven by refinancing, with a sub-index showing a 13.0 per cent jump in those loans. Demand for new mortgages declined 2.4 per cent.
“A flare-up of the sovereign debt troubles in Europe once again led investors to flee to the safety of U.S. Treasury securities last week,” MBA Vice President of Research Michael Fratantoni said. “As a result, mortgage rates have reached new lows in our survey, and refinancing application volumes picked up substantially as a result.”
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